Amazon Inc., the U.S. based e-commerce giant, has apparently launched a Delivery Service Partners program which enables entrepreneurs to set up local delivery networks of up to 40 delivery vans inscribed with Prime logos. As per reliable sources, the initiative would kickstart hundreds of new small businesses which will further lead to the hiring of a significant number of truck drivers across the U.S.
Reportedly, algorithms would finalize the packages that are to be sent to external delivery partners such as UPS and FedEx, and the ones sent to the delivery stations of the firm. For the record, Amazon currently has 75 delivery stations in the U.S.
Speaking on the firm’s latest addition to its mammoth logistics network, Senior Vice President of Amazon Worldwide Operations, Dave Clark was quoted stating that the new delivery program is a part of Amazon’s strategy to scale costs effectively and stand in line with the growth in e-commerce. He further stated that the company utilizes everything in a bid to fulfill the growing needs of the market and has built great relationships with its external delivery partners which won’t change in the times to come.
As per the latest annual 10-K filing, Amazon has noted that its shipping expenses grew from USD 11.5 billion in 2015 to USD 21.7 billion in 2017. The company elaborated that the shipping costs include a delivery center, transportation, and sorting expenses. According to a few trusted sources, 40 percent of all e-commerce purchases in the nation are estimated to be made on Amazon this year.
Reportedly, the new delivery service program allows entrepreneurs to start the business with a meager sum of around USD 10,000 as the initial investment. This arrangement allows Amazon to control its transportation costs and customer service while enabling new partners to function under the behemoth’s name.